The Shifting Loyalty of Australian Shoppers: Brand vs. Price

Price sensitivity grows, but values-driven choices are rising too. As Australia continues to navigate economic uncertainty and shifting consumer values, Aden Advisory’s 2025 Shopper Sentiment Report explores how purchasing decisions are evolving. With inflationary pressures, supply chain disruptions, and ethical considerations reshaping buyer behavior, brand loyalty is becoming more fluid—and more conditional.

 

Amid rising living costs and digital disruption, Australian consumers are becoming increasingly calculated in how they spend. According to Aden Advisory’s latest nationwide survey of 2,100 respondents across metro and regional areas, 58% report heightened price sensitivity compared to last year. Rather than abandoning brands entirely, shoppers are taking a more strategic approach—deliberately trading down in categories like packaged food, household cleaning supplies, and personal care without sacrificing on quality or values.

​

This shift in behavior reveals a more thoughtful consumer. Shoppers are toggling between private labels and premium brands depending on promotions (43%), relying on price comparison apps weekly (37%), and making more deliberate purchasing decisions overall—61% now actively consider function, price, and ethics before buying.

​

Two distinct consumer mindsets are emerging. “Price-first” buyers—common among middle-income families, students, and regional households—are focused on value. At the same time, “purpose-first” buyers, especially younger, urban, and digitally engaged consumers, are aligning their wallets with their worldviews. In fact, 41% of Gen Z respondents say they remain loyal to brands with a clear environmental or social mission. For many, loyalty now reflects identity and alignment, not just product heritage or quality. “We’re witnessing the rise of value-conscious but values-driven consumers,” said Miranda Teo, Behavioral Insights Director at Aden Advisory. “They want a good deal, but they also want their purchase to mean something.”

​

This duality is clearly playing out in the grocery sector. Discount retailers like ALDI have seen a 7% increase in weekly foot traffic, yet niche brands focused on organic, fair-trade, or plant-based offerings are outperforming in units per shelf in urban outlets. Nearly 30% of consumers report buying fewer items overall—but from brands they perceive as more meaningful.

​

Transparency is also taking center stage. One in three shoppers now researches a brand’s ethical practices before making a purchase. Sixty-two percent believe companies should openly share supply chain information, and 45% engage with brands on social media to gauge authenticity. Notably, 28% have boycotted a brand due to perceived unethical conduct—underscoring that storytelling, accessibility, and authenticity are no longer nice-to-haves, but must-haves.

​

Digital behavior is accelerating brand fragmentation. As e-commerce and mobile platforms give consumers unprecedented choice and convenience, loyalty is becoming increasingly fluid. Participation in traditional points-based programs is declining—only 23% say such rewards influence purchases. Meanwhile, 38% follow shopping influencers on TikTok or YouTube, and brands with streamlined mobile UX and embedded payment options are consistently outperforming in cart conversion.

​

For brands, the implications are clear:

• Positioning is everything: Clearly defined values build long-term equity—even when prices are less competitive.

• Dynamic pricing strategies: Personalized discounts and flexible subscription perks can enhance retention.

• Human-centric messaging: Local relevance and authentic storytelling outperform generic advertising.
   

Looking ahead, loyalty is evolving into a hybrid model—a blend of rational value and emotional resonance. Brands that embrace tiered engagement strategies, invite ongoing consumer feedback, and remain responsive in real-time will be best positioned to win.

​

Key Insights from the 2025 Consumer Loyalty Report:

• 58% of consumers are willing to switch brands for better prices

• 41% of Gen Z prioritize brands aligned with their values

• Ethical transparency influences 1 in 3 purchases

• Digital ecosystems are amplifying volatility in loyalty behavior

​